Multifamily Direct Lending Program Facts

Highlights:

The Willows Apartments, financed in partnership with the City of Austin and TSAHC, celebrated their ribbon cutting on March 1, 2011. The project provides 64 units of very-low income housing for families and persons at risk of homelessness. TSAHC is proud to be a partner in this great project.

 

Program Overview

TSAHC’s Multifamily Direct Lending Program promotes equal access to safe, decent, and affordable rental housing with an emphasis on serving rural and underserved communities. The program provides short-term and/or long-term financing to nonprofit and for-profit developers to increase or preserve the stock of affordable rental housing throughout the State of Texas. 

The program may be used to construct new rental homes and apartment for low-income households, or to purchase and rehabilitate existing rental units. Project types may include scattered-sites rental homes, affordable assisted living, limited-equity cooperatives, and other nontraditional rental housing proposals. TSAHC’s direct lending program also is often used in partnership with other pubic or private funding sources.

TSAHC accepts applications to the Program on an ongoing basis and only when there are available sources of funds for the Program. In the event that there are not sufficient funds available for a Development, the Corporation shall return any application or commitment fees submitted by a borrower. Prospective borrowers should download and complete the application pursuant to the guidelines included in the application.  

Multifamily Direct Lending Program Policies
Multifamily Direct Lending Program Application (pdf)
Multifamily Direct Lending Program Application (Word)
Multifamily Financial Analysis Spreadsheet

 

Loan Terms and Rates

Term of Loan:

The standard length of loan agreements, (the “Term”) is 15 years, however TSAHC considers both longer and shorter terms based on feasibility and available funding.

Interest Rate:

Interest rates are based upon the TSAHC’s cost of funds and will vary based on the size and type of funds available at the time of commitment.

Affordability:

TSHAC’s financing is limited to only those units reserved for low-income households at 80% or below the area median family income (AMFI). Additionally, at least 20% of project units must be reserved for households at 50% of the AMFI, or 40% of units are reserved for households at 60% of the AMFI.

Eligible Borrowers:

Experienced entities engaged in affordable housing development, including non-profit or for-profit developers.

 

For more information and to discuss lending opportunities please contact David Danenfelzer at 512-477-3562 or at: ddanenfelzer@tsahc.org

 

Funding Resources

TSAHC combines investments from private foundations and financial institutions with its own revenues to provide low cost loans. TSAHC generally considers loans from $100,000 to more than $2 million based on the availability funding and financial feasibility of the project. TSAHC considers both first lien and subordinate lines of credits, and will structure financing to work as both construction and permanent financing. Our current investors and financial partners include:

Wells Fargo Banks, N.A.
Federal Home Loan Bank of Dallas
Community Development Trust, Inc.

 

Our Past Projects

The interactive map below includes brief information about all of the loans completed by the Corporation through both our multifamily and single family lending programs.